June 19, 2018

Auditing

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Auditors and Fraud: Where Does Responsibility Lie in the Wake of the FDIC’s Win Against PwC?

In the waning days of 2017, a judge in Alabama found PwC was negligent in its audit of Colonial Bank. The Federal Deposit Insurance Corporation had sued the firm for failing to detect the fraud at the root of Colonial’s 2009 failure. Although Judge Barbara Jacobs Rothstein denied other claims brought by FDIC and the […]

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Reminder: KPMG Fired a Bunch of People for Mishandling PCAOB Inspections Details They Weren’t Supposed to Have

KPMG released its global revenue results today and its the standard self-congratulatory Big 4 flimflam that we love to hate around here. The Wall Street Journal and Financial Times both covered the results in earnest; the Journal noted that KPMG’s growth lagged its BIG peers, while the FT mentioned a couple of the firm’s “huge […]

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Let’s Wildly Speculate About Why PwC Is Shopping Its Government Services Practice

This Reuters story reports that PwC is looking to sell its government services, perhaps “to pursue the growing business of auditing government agencies.” The story says that Morgan Stanley is running the sale and private equity firms Veritas and Madison Dearborn Partners are two potential buyers. None of the firms mentioned commented for the Reuters […]

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Here’s the Only Affirmation Accountants Need

This is from a couple weeks back, but it deserves a mention because it will help those of you currently experiencing a crisis of professional identity. It comes from a speech given by Wesley Bricker, the Chief Accountant of the SEC, and it’s just the kind of thing you need to hear when you’ve recently […]

big-4-punishment

U.K. Audit Regulator Encouraged to Slap Big 4 Wrists Slightly Harder

Despite what you might hear, Big 4 audit firms have it pretty easy when it comes to compliance. Yes, there a ton of rules to follow, but in the event that a firm, one (or several) of its partners and employees run afoul of those rules, the consequences range from a mild rebuke to a […]

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Watering Down Data Analytics for Dumb Accountants

Most accountants, especially CPAs, seem smart on paper. Some even live up to it in person. Others are less, um, fortunate… So, it doesn’t come as a big surprise that even our profession’s own publication called us out for being dumb, or at least naïve when it comes to data analytics: Accountants need to increase […]

auditorproud poem

A Poem for #AuditorProud Day

I am an auditor. I am proud. Say it with me nice and loud. I am an auditor. I am proud. I’m a proud auditor, no exceptions allowed. I audit all day, I audit all night. I am proud to audit with all my might. Sure we screw up now and then: Enron, WordCom, the […]

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KPMG Settles With SEC Over a Giant Failure of an Audit

KPMG has settled SEC charges for $6.2 million due to a shoddy audit of an oil and gas company. The partner in charge of the job, John Riordan, also settled to charges, agreeing to a $25,000 fine and a suspension to practice before the SEC. He can re-apply in two years. KPMG did not admit […]

PCAOB_MEMBERS

The PCAOB Could Look Very Different, Very Soon

Get a good look, people. Anyone interested in becoming a PCAOB member? It sounds like there’s a bunch of change coming, based on the public statement from new SEC Chairman Jay Clayton: I am very pleased that Chairman [James] Doty has agreed to continue to serve as the Chairman of the PCAOB as we commence […]